Tax all online sales, ICSC proposes

The International Council of Shopping Centres (ICSC) has proposed that those online transactions not subject to sales tax in New York should in fact be taxed. Author: Deborah Bates

The International Council of Shopping Centres (ICSC) has proposed that those online transactions not subject to sales tax in New York should in fact be taxed.

Otherwise, the situation provides some online retailers with a clear advantage, according to the ICSC’s chairman, David B Henry.

“A sale is a sale, no matter where it takes place,” he said – even if it’s via an online payment gateway in New York State, wherein distributors aren’t obliged to adhere to sales tax rules.

“By not having to collect sales tax, online retailers have a distinct competitive advantage of their local retail counterparts,” Henry added.

His comments were echoed by Saugerties-based business owner, Cheryl Rice. She too spoke to Saugertiesx.com about the proposals, stating they were “only fair”.

However not all online retailers are in favour of the move, such as Kingston businessman Ernie Saker. He stated firmly that he is “opposed” to taxing his online sales, adding: “Drumming up envy in order to further tax people is by my reckoning quite immoral.”

“I just show up every day and run my business as I see fit,” he concluded, supported by fellow retailer David Friedman of New Paltz’s Barber Books. He suggested that although the issue “should be addressed”, there are more pressing worries that retailers should concentrate on for now.